Generating or suppressing Schedule M-3 in ProConnect Tax

ProConnect Tax will automatically generate the Schedule M-3 based on the requirements from the form instructions.

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Who must file per the Corporate Schedule M-3 form instructions:

• Any domestic corporation or group of corporations required to file Form 1120 that reports on Form 1120, Schedule K, Balance Sheets per Books, total assets at the end of the corporation's tax year that equal or exceed $10 million.
• A corporation filing a non-consolidated Form 1120 that reports on Schedule L total assets that equal or exceed $10 million.
• Any U.S. consolidated tax group consisting of a U.S. parent corporation and additional includible corporations listed on Form 851 required to file Form 1120, that reports on Schedule L total consolidated assets at the end of the tax year that equal or exceed $10 million.

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Who must file per the Partnership Schedule M-3 form instructions:

• The partnership's total assets at the end of the tax year are $10 million or more.
• The partnership's adjusted total assets at the end of the tax year are $10 million or more.
• An entity that is a reportable entity partner with respect to the partnership owns or is deemed to own an interest of 50 percent or more in the partnership's capital, profit, or loss, on any day during the tax year of the partnership.

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Who must file per the S Corporate Schedule M-3 form instructions:

• Any corporation required to file Form 1120S that reports on Schedule L of Form 1120S total assets at the end of the corporation's tax year that equal or exceed $10 million.

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How to force or suppress the Corporate Schedule M-3:

1. Go to Input Return ⮕ Balance Sheet ⮕ Schedule M-1, M-3.
2. Select Schedule M-3.
3. Enter a 1 or a 2 in, Schedule M-3: 1 = force, 2 = suppress.

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How to force or suppress the Partnership Schedule M-3:

1. Go to Input Return ⮕ Balance Sheet ⮕ Schedule M-1, M-3.
2. Select Schedule M-3.
3. Enter a 1 or a 2 in, Schedule M-3: 1 = force, 2 = suppress.

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How to force or suppress the S-Corporate Schedule M-3:

1. Go to Input Return ⮕ Balance Sheet ⮕ Schedule M-1, M-3.
2. Select Schedule M-3.
3. Enter a 1 or a 2 in, Schedule M-3: 1 = force, 2 = suppress.

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